[Anonymous]

The news are not so good

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=176694&version=1&template_id=46&parent_id=26

It just says that banks in UK are among the ones to be blamed for the crazy prices in Spain and everywhere else. they should have never allowed people to MEW their house in order to speculate properties in Spain, Bulgaria, Turkey.

Especially not amateurs with no idea about the local markets.

[Anonymous]

Well there you go! 😯 Therein lies the root of all the evil. 🙄

[Inez]

Its all the banks fault – they can take the blame then!

Seriously though, its not getting any better is it!

[Anonymous]

I have stopped buying FT and now buy the Gulf Times. The Banks responsibilty only comes into play with the lending,

The Banks cannot be blamed for excessive buildings, misuse of planning laws, corruption at town hall, illegal builds, corroupt lawyers, estate agents.

For the banks the two things are paramount. The borrowers capacity to pay and the forced sale value if the borrowers cannot pay. As it seams that the 70% of the contract price gives them the margin to recover the amount that they have to recover.

No, bank in any country can be responsible for the workings/legality of the system the province/region has in place.

[Inez]

And heirin we come back to the magical price!!

Banks were lending to 80% of bank valuation here in Spain – not contract or purchase price, and so as the actual price received by the seller was a lot lower than that, buyers were able to fully finance the purchase including costs and in some cases a cash back as well!

And made off with the dosh never to be seen again!

Now at least some directives from the BOS have come in, but there are always loopholes……………………….!

[Anonymous]

Hi Inez,
I or my friends have never been able to borrow on the market price. It was always on the contract price. We all bought in the late 90s,or middle 00. ( Ahhhhhhhhh those were the days )

The lending was done on 60% to 70% on contract not LTV, despite the fact that the graph for the increase had just started its upward movement.

Are you privy to the new direction by Bank of Spain ????????? if yes can I please have them for my knowledge.

cheers

[Anonymous]

Stand to be corrected but my understanding from the banks I deal with is that they will not lend (to non spanish at least) more than 80% of the purchase price or valuation whichever is the lowest to avoid the use of inflated Private contract price and significant under decleration the bank will not sign any mortgage where the mortgage exceeds the escritura declared price I beleive this is a BOS directive. Some costs can be covered up to a maximum of 88% of purchase price ans long as it does not exceed 80% of valuation and that the mortgage does not exceed declared price.

[Inez]

I know most missed that boat and it was a window I was waiting to see closed despite getting through a few sales on the back of it!”

Basically thre are 3 main products as far I understand it – 80% of bank value subject to 90% of purchase contract price, 70% of bank val to 100% of pcp and a good one for investors of 90% of bank val subject to 100% of pcp BUT a higher start up cost for the bank AND they use their own panel of valuers so MAY downvalue slightly!

Good rates of interest and all with SOME years of interest only payments

All depends what sort of buyer you are and what you want!!

Any more info and you have to pm me!!! No charge for youhoo 😆

[Author]

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